Montreal’s strong employment growth and immigration make it one of the strongest and most affordable housing markets in the country this year, according to a report from global real estate firm Marcus & Millichap.
An estimated 16,000 households will be created this year in Canada’s second-largest city, partly because Montreal has some of the most affordable single-family homes in the nation, the mid-year report found.
The report also noted that demand is driving home prices and rental rates higher. The single-family benchmark price jumped 6.3 per cent to $381,600, widening the gap between the monthly mortgage payment and the average rent to roughly $700.
The rental vacancy rate in Montreal has fallen below 2 per cent for the first time and rents are increasing by an average of 4.1 per cent annually.
Canada Mortgage and Housing Corp. (CMHC) noted recently that Montreal is close to overheating due to consistent housing price hikes.
“Housing prices continue to increase rapidly in certain neighbourhoods,” warned Bob Dugan, the CMHC’s chief economist, in a July conference call.